Social Security When a Spouse Passes: What You Need to Know
Losing a spouse is one of life’s most difficult transitions — emotionally, financially, and logistically. In the midst of grief, there are tough decisions to make, especially around Social Security benefits. At Pursuit Wealth Planning, we’ve walked alongside many clients through this chapter, and we want you to know: you don’t have to figure this out alone.
Here’s a breakdown of how Social Security works when a spouse passes, what strategies to consider, potential tax impacts, and how we can help guide you through it all.
The Basics: Survivor Benefits
When a spouse passes away, the surviving spouse may be eligible for Social Security survivor benefits. Here’s what you need to know:
✔ If both spouses were receiving benefits, the surviving spouse typically keeps the higher of the two benefits — not both.
✔ You may be eligible for survivor benefits as early as age 60 (or age 50 if disabled), but taking benefits early results in a reduced monthly amount.
✔ If you haven’t yet claimed your own benefits, survivor benefits can provide income while you delay your own benefits to maximize their value.
✔ Survivor benefits are also available for ex-spouses in certain situations, provided the marriage lasted at least 10 years and the individual is unmarried at the time of claiming.
Strategies to Consider
Everyone’s situation is unique, but here are a few common strategies we help clients explore:
1. Switching to Survivor Benefits First
If your own Social Security benefit will eventually be higher, you might take the survivor benefit initially, then switch to your own benefit later (up to age 70) to maximize your total lifetime benefit.
2. Maximizing Survivor Benefits
If your spouse delayed claiming Social Security beyond full retirement age, their benefit — and thus your survivor benefit — may be higher. Understanding the full picture is key before making any decisions.
3. Considering Employment
If you are under full retirement age and working while collecting survivor benefits, your benefits may be reduced temporarily due to income limits. This doesn’t mean they’re gone for good, but it’s important to plan for.
What About Taxes?
Social Security benefits can be taxable, and unfortunately, losing a spouse may push you into a less favorable tax situation:
✔ As a single filer, your income thresholds for taxation are lower compared to when you filed jointly.
✔ Survivor benefits themselves may be partially taxable depending on your other income sources like pensions, investment income, or Required Minimum Distributions (RMDs).
✔ Strategic tax planning can help soften this impact — sometimes delaying benefits or adjusting withdrawals from other accounts can reduce your tax bill.
Other Considerations You Might Not Have Thought About
✔ Pension Options: Some pensions offer survivor benefits that interact with Social Security — knowing how they coordinate is crucial.
✔ Required Minimum Distributions (RMDs): If your spouse was taking RMDs or you inherit retirement accounts, this may affect both your income and taxes.
✔ Health Insurance: If your health coverage was tied to your spouse's employer or retirement benefits, this may need to be addressed.
✔ Estate & Financial Planning: Updating beneficiaries, retitling assets, and reviewing your overall financial plan are all important steps.
You Don’t Have to Navigate This Alone
Losing a spouse is hard enough — understanding Social Security shouldn’t add more stress. We can help:
🔹 Run the numbers on your options
🔹 Coordinate survivor benefits with your broader financial picture
🔹 Explore tax-efficient strategies for income and withdrawals
🔹 Provide clarity and peace of mind during this transition
If you or someone you care about is facing this situation, let’s connect. We’re here to help you understand your options and take the next steps with confidence and care.
Dream. Plan. Achieve. Even in life’s hardest chapters, we’ll help you find the path forward.
